As Nigeria aims to grow its economy to $1 trillion by 2030, experts have advised the Federal Government (FG) to shift from an output-based economic model to an asset-based financing approach. Renowned economist Dr. Ayo Teriba emphasized the need for Nigeria to leverage its vast but underutilized assets to attract foreign direct investment (FDI), instead of relying solely on production and exports for economic growth.
Speaking at the 2025 Economic Outlook event hosted by the Association of Corporate Treasurers in Nigeria (ACTN), Teriba criticized the government’s dependence on debt-financed growth. He pointed out that countries like South Africa, Brazil, and Russia face similar liquidity crises due to outdated economic strategies, while nations that have embraced asset monetization have experienced significant economic success.
Teriba called for the privatization and securitization of key national assets, particularly in sectors like energy, railways, and telecommunications. He cited Nigeria’s telecommunications industry as an example of a sector that successfully attracted private investment without government borrowing, suggesting that similar strategies could be applied to other industries.
Drawing comparisons to Saudi Arabia and the UAE, which have transformed national assets into global investment hubs, Teriba urged Nigeria to adopt asset-backed bonds and equity-linked instruments instead of issuing Eurobonds or relying on loans. He also encouraged state governments to capitalize on their local resources rather than depending on federal allocations for revenue.
In his opening remarks, ACTN President Adeyinka Ogunnubi stressed the need for businesses and corporate treasurers to embrace financial innovation. He highlighted the role of treasurers in optimizing liquidity, managing financial uncertainties, and ensuring long-term business sustainability in Nigeria’s evolving economic landscape.
Source: Vanguard